7.	Investments

Investment, cost method

In August 2010, promissory notes of Runa Inc. with a carrying amount of US$1,300,000 were converted into equity shares upon exercise of conversion option by the Company resulting in an equity interest ownership in Runa Inc. of 10%.

During the fiscal year ended March 31, 2013, the Runa Inc. offered right issue to existing shareholder and the Company subscribed of US$104,987 to maintain the existing ownership.

Investments in equity interest

The Company’s investments in equity method investees interest were as follows:


	Percent of ownership of equity shares
Tachyon Technology Private Limited (Impaired in fiscal 2009)		26	%
Imere Technology Private Limited (up to October 8, 2012)		44	%
Eterno Infotech Private Limited (Up to December 19, 2011)		43	%
Bigslick Infotech Private Limited (Impaired in fiscal 2010)		37	%

The following table presents financial information for equity method investees:


	As at March 31,
	2012		2013
	US$		US$
Current assets		207,456		—
Non-current assets		103,585		—
Current liabilities		58,435		—
Non-current liabilities		195,000		—


	For years ended March 31,
	2011			2012			For the period ended October 8, 2012
	US$			US$			US$
Revenues		480,045			362,280			320,005
Total costs		1,307,874			700,337			72,910
Profit (loss) from operations		(827,829	)		(338,057	)		247,095
Earnings (loss) attributable to Rediff*		(785,707	)		(215,735	)		84,310

*	Company’s share of profit (loss) of the equity method investee has been determined after giving effect to the subsequent amortization on account of fair value adjustments made for the identifiable intangible assets of the equity method investees as at the date of acquisition.

During the fiscal year ended March 31, 2011, the Company impaired its investment of US$543,220 in Tachyon Technology Private Limited after concluding that such investment was other than temporarily impaired due to uncertainties involved and fitment with long term strategy.

During the fiscal year ended March 31, 2012, the Company sold its investment in Eterno Infotech Private Limited for a consideration of US$937,866 and recorded a gain of US$749,897 under the heading “Gain on sale of equity method investee” in consolidated statement of comprehensive loss.

During the fiscal year ended March 31, 2013, the Company sold its investment in Imere Technology Private Limited for a consideration of US$1,452,944 and recorded a gain of US$1,292,168 and included as “Gain on sale of equity method investee” in consolidated statement of comprehensive loss.